Thailand
Bank of the Lao PDR Considers Ban on Public Holding Foreign Currencies
The central bank of the Lao PDR suggests banning members of the general public from owning foreign currencies to address money-related problems including Kip depreciation and rising inflation.
KPL reports that the government is about to issue bonds with high interest rates to reduce the volume of cash in circulation next month.
This happened after the Bank of Lao PDR vowed to solve foreign exchange problems at a special press conference on 27 May.
Governor of the Bank of the Lao PDR (BOL), Mr. Sonexay Sitphaxay, said that the central bank would implement a number of measures to ensure foreign currency enters the economy at an appropriate volume.
He acknowledged that current issues are causing anxiety among members of society who are concerned about the country’s financial stability.
The conference stated that the Bank of the Lao PDR will coordinate closely with the Ministry of Public Security to crack down on individuals and entities that engage in currency manipulation or operate illegal exchange activities that destabilize the local economy.
The central bank will work with relevant sectors and departments to improve mechanisms for the management and provision of foreign currencies related to the import of commodities necessary for people’s livelihoods.
Mr. Sonexay also said the Bank of the Lao PDR will continue to implement measures to try to ensure foreign currency enters the banking system or institute measures facilitating the bank’s purchasing larger volumes of foreign currencies to better meet the demands of individuals and businesses.
Source: https://laotiantimes.com/2022/06/14/bank-of-the-lao-pdr-considers-ban-on-public-holding-foreign-currencies/